The chart below shows our big wave III starting from the bottom of the bullish rising wedge around the 415 area. Wave 1 of III was 315 total points and if we multiply that number by 1.618 we should get fairly close to the number of points wave 3 of III should be, at a minimum, which would be 510 total points for our wave 3 of III. The bottom of wave 2 of III came in around the 650 area, the end of the 16 month consolidation triangle, and is the launching area for our wave 3 of III. If we add 510 points, 1.618 x wave 1 of III, to our bottom at the end of wave 2 of III at 650 we get a price objective, on Gold, to around the 1160 area. Remember we still have wave 4 of III down after that with a wave 5 of III rally to finish off our big wave III. The completion of our big wave III up could take us all the way out to the end of 2009 roughly the same time it will take the dollar to bottom out in its wave III down.
The road map as I see it looks fairly clear at this point in time. The bounce off of the old high at 850 should have been expected and the little consolidation flag or triangle that is forming just below that most important high is a perfect set up to break through that resistance point. I would expected a retest of the 850 area, from the topside, sometime in the future.
Wave iii of 3 of III, its finally knocking on our door. Don;t be afraid to open the door when you here the knock as opportunity may be knocking.
All the best…Rambus

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